Aggregate expenditures are equal to
A) the total of consumption plus investment plus government expenditures plus exports minus imports.
B) the total of consumption plus investment plus government expenditures.
C) the total of consumption plus investment plus government expenditures plus imports minus exports.
D) consumption alone in a simplified Keynesian model.

Question

Quizplus · Accepted Answer

Aggregate expenditures include consumption, investment, government expenditures, and net exports (exports minus imports). Therefore, the correct option is A, which includes all of these components. B only includes consumption, investment, and government expenditures, while C includes imports minus exports instead of exports minus imports. D only includes consumption in a simplified Keynesian model and does not take into account the other components of aggregate expenditures.

Aggregate Expenditures Are Equal to